Beijing — China has granted exemptions to export controls on Nexperia chips for civilian applications, the commerce ministry said on Sunday in a move that will help to relieve supply shortages for carmakers and vehicle suppliers.
The announcement is the strongest signal yet from Beijing that it will ease pressure on the global vehicle industry caused by export curbs imposed after the Dutch government took control of Nexperia, a large manufacturer of basic chips used in vehicle electrical systems.
Nexperia is based in the Netherlands but owned by Chinese company Wingtech. The Dutch government seized control of Nexperia on September 30 and said Wingtech was planning to move the company’s European production to China, which would pose a threat to European economic security. The Chinese government blocked exports of its products from October 4.
China’s commerce ministry did not specify what it considered to be civilian use, but its announcement follows statements from German and Japanese companies saying that deliveries of Nexperia’s Chinese-made chips had resumed.
Yet, bilateral ties between China and the Netherlands, and by extension the EU, are likely to remain strained until the dispute over Nexperia’s ownership and operations is resolved.
China said last week that it would begin accepting applications for exemptions after a meeting between US President Donald Trump and Chinese President Xi Jinping on October 30.
China’s commerce ministry has repeatedly said it was protecting global chip supply chains while the Netherlands was failing to take action to resolve the dispute.
The ministry’s statement on Sunday said that China hoped the EU would “further intensify” efforts to urge the Dutch side to revoke its seizure of Nexperia.
“China welcomes the EU to continue leveraging its influence to urge the Netherlands to promptly rectify its erroneous actions,” the ministry said.
Reuters
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